Abstract
This study aims to determine whether earnings power, leverage, and firm size affect earnings management and whether institutional ownership moderate the effect of earning power, leverage, and size of the company on earnings management. The theory underlying this research is agency theory and positive accounting theory. Based on both theories, the conflict of interest that occurs between the owner and the manager where each will tend to emphasize personal interests or certain parties. The sample in this study consists of 93 manufacturing companies listed on the Indonesia Stock Exchange for the period 2014-2016. Sampling was done by purposive sampling method. The data analysis technique used to test the hypothesis is Moderated Regression Analysis. The results of this study indicate earnings power, leverage, and firm size have a positive effect on earnings management. Institutional ownership weakens the effect of earning power on earnings management.
 
 Keywords : Earning management, earning power, leverage, company size
Highlights
This study aims to determine whether earnings power, leverage, and firm size affect earnings management and whether institutional ownership moderate the effect of earning power, leverage, and size of the company on earnings management
The results of this study indicate earnings power, leverage, and firm size have a positive effect on earnings management
Analisis Faktor-Faktor yang Berpengaruh Terhadap Earning Management pada Perusahaan Go Public Di Indonesia, Jurnal Akuntansi & Keuangan, Vol 3, No 2, 89-101
Summary
Teori Keagenan (Agency Theory) Teori keagenan didasarkan pada berbagai aspek dan implikasi hubungan keagenan, yaitu hubungan antara principal dan agent. Maka dari itu untuk menjaga reputasi perusahaan di pandangan pihak eksternal manajer perusahaan akan cenderung memilih metode akuntansi yang memiliki dampak meningkatkan laba. Semakin tingginya jumlah laba yang dapat diperoleh menyebabkan manajer perusahaan cenderung akan melakukan penurunan jumlah laba yang diperoleh dengan tujuan untuk menghindari tuntutan diperolehnya jumlah laba yang lebih tinggi di masa datang. Ratio maka risiko kreditor berupa ketidakmampuan perusahaan untuk membayar kewajibannya sehingga manajer akan cenderung memutuskan untuk melakukan manajemen laba agar tidak terjadi pelanggaran perjanjian hutang yang dapat menimbulkan biaya lebih. Sehingga jika pada tingkat leverage tinggi dan manajer ingin melakukan praktik manajemen laba agar tidak terjadi risiko penambahan biaya, pihak institusi berperan dalam mengawasi tindakan-tindakan manajer. Sehingga dengan semakin banyaknya pihak institusi yang ada dalam suatu perusahaan maka akan memperkuat pengaruh ukuran perusahaan terhadap manajemen laba. Ha6 : Kepemilikan Institusional memperkuat hubungan ukuran perusahaan terhadap manajemen laba
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